Loan origination is the core process of running a bank or lending institution, and lenders are constantly looking for ways to improve their loan origination process to increase efficiency, reduce risk, and increase profitability. As it stands, most lenders utilize teams of underwriters to review applications with varying levels of detail, utilizing their discretion and experience to find the best possible offer for each client.
Fintech has evolved the process, though, and there are many firms that have developed software solutions to make loan origination efficient and standardized. These loan origination platforms don’t eliminate the need, or the appreciation, of good underwriters. Instead, they make it easier to take care of more standard applications almost instantly, freeing up the talent and time of these underwriters to handle more complicated applicants.
To give lenders an idea of what these platforms are, we are going to cover:
- What loan origination platforms are.
- The benefits of automated loan origination.
- How lenders can get started within weeks.
Let’s dive into each and get a more detailed understanding of how to improve the loan origination process.
What Is a Loan Origination Platform?
Loan origination platforms are software tools that allow lenders to use industry-standard criteria, or their own custom criteria, to generate offers for consumers automatically. These can be instantly delivered to consumers who qualify for prime offers or presented to the lender beforehand to give them the final call on whether to present it to the client. Offers can be tweaked manually to ensure that banks aren’t left to the whims of automated software.
These platforms help automate handling straightforward customers, providing quicker results for consumers and taking work off the plates of underwriters. They are highly customizable and can be configured to meet the needs and goals of any business. They also provide comprehensive analytics, so business leaders can quickly read and understand the impact of changes they make over the course of their experience.
The Benefits of Automated Loan Origination
There are several benefits that come with improving the offer generation process. The most significant include:
- More time for underwriters to focus on complicated clients.
- Instant results for customers.
- Mathematically optimizes origination criteria over time.
- One-click modification of underwriting requirements as the market fluctuates.
All of these benefits help save costs and time for lenders, as well as optimize them for higher profitability and lower risk. They do this by allowing businesses to tweak their requirements and watch how they affect their bottom line over time. By inputting these requirements into a software tool, businesses can be certain that they are followed to a T and that any change in profitability represents the true outcome of the changes.
This is one of the major advantages of automation through a loan origination platform—consistency. At the end of the day, lending may seem like a bit of a gamble regarding who defaults and who doesn’t, but experts understand that it all comes down to utilizing the right math. By ensuring that parameters are strictly followed, it becomes far easier for lenders to narrow down those parameters to the most profitable formula possible.
All that lenders have to do is select a quality software partner that can deploy quickly, and cover every type of financing that a lender wants to offer. Luckily, Skeps can do all of that and more.
Leverage a Loan Origination Platform With Skeps
Skeps offers a comprehensive, end-to-end consumer financing platform that helps businesses modernize their entire payment process. Working with a whole network of established lenders, we go above and beyond one-click payment, also offering a one-click application process for several different types of consumer financing, including:
- Installment financing payment plans
- Co-branded credit cards
- Consumer loans and leases
If you’re looking to partner with a forward-thinking fintech company that will keep consumers' eyes on the purchase while offering best-in-class financing, Skeps is the perfect fit.